National Business Wire (Dec 5) -- Finnish telecom giant Nokia Corp. expected revenues from AT&T Inc. in mobile networks to decrease in the next 2-3 years after the U.S. firm turned to a partnership with Ericsson.

Nokia released a statement on Tuesday that it has learned that AT&T plans to work with other vendors on an open radio access network (RAN) deployment in the next five years.

As a result, Nokia now expects "revenue from AT&T in Mobile Networks will decrease over the next 2-3 years."

Year-to-date in 2023, AT&T accounted for 5-8% of Nokia's mobile network net sales.

The European telecom gear manufacturer has announced a cost-cutting action that is expected to partially mitigate the impact of AT&T's decision.

Nokia said it expects its mobile networks business to remain profitable over the next few years, but AT&T's decision will delay the realization of double-digit operating margins by two years.

Ericsson, Nokia's European rival, announced Monday that it is working with U.S. telecom operator AT&T on a five-year network transformation and digitalization strategic agreement worth about $14 billion.

Notably, the deal is the largest financially in Ericsson's history.

Ericsson will utilize its recently expanded 5G Smart Factory in Lewisville, Texas, to deploy a wide range of 5G open radio access networks (RANs) products within the U.S. for AT&T.